POLAND. The retail outlets operated by BH Travel Retail Poland, a subsidiary of Baltona SA, in Warsaw Frederic Chopin airport’s Terminal A were closed on 17 February following a disagreement between the retailer and state-owned airport authority PPL. The stores remain closed as the dispute continues.
A spokesperson for PPL confirmed the closure to The Moodie Report, and said: “BH ceased operations in the duty free zone at Terminal A as a result of the expiry of their permit to operate in the Duty Free Zone.
“BH Travel Retail Poland lost their legal right to conduct activity due to their failure to meet the conditions of contracts concluded with PPL.”
Indian operator Flemingo Duty Free is the majority shareholder in Baltona SA, previously owned by the Polish state. Baltona is Poland’s biggest airport retailer, with a market share of about 45% and total revenue of PLN155 million (US$55.4 million) in 2010.
In a statement, Flemingo told The Moodie Report: “There are no legal or factual grounds to terminate any of our concessions in Warsaw and as a result all contracts remain valid and in full force. The company undertakes all steps to resolve the dispute amicably.”
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Baltona operates a number of duty free and other outlets at Warsaw, where it competes with Aelia Polska and Keraniss |
Baltona’s shares were listed on New Connect, the alternative market of the Warsaw Stock Exchange, on 30 June last year.
Baltona runs 21 stores in several Polish airports including Warsaw, Gdańsk, Katowice, Kraków, Poznań, Rzeszów and Wrocław airports. It also runs a duty paid border store on the German crossing and a shipchandling business.
Warsaw Frederic Chopin is Poland’s largest airport, welcoming 9.34 million passengers in 2011, up by +7.2% on the previous year. Aelia Polska, part of LS travel retail, runs a number of duty free stores in the airport’s newest terminal, while long-term incumbent Keraniss also operates a number of outlets at the location.
